The Power of Ultimatums

An employee should not get caught by surprise when being fired*.

As a leader, it is your responsibility to clearly communicate your expectations to your employees. This includes providing them with a clear understanding of what is expected of them and a clear vision of what will happen if they fail to meet those expectations. Even more so if the consequences are as severe as losing a job and salary.

Providing feedback if an employee isn’t performing/behaving properly and is on the cusp of being fired is what I call an Ultimatum in this essay.

What is an Ultimatum?

The word ultimatum comes from the Latin words “ultimus,” meaning “final” or “last,” and “atum,” derived from the verb “ato,” which translates to “to cause to” or “to send.” When combined, “ultimatum,” symbolizes the act of issuing a final directive or mandate.

In the Roman Empire, ultimatums were often used as a means of diplomacy. Roman diplomats employed ultimatums as an instrument to communicate the final terms of a negotiation or peace treaty. These ultimatums were frequently issued as a final resort, outlining the demands or terms that the opposing party needed to accept to avoid dire consequences, typically in the form of aggression or war. Over time ultimatums got the connotation of a decisive, non-negotiable demand.

Why Ultimatums are Powerful and Necessary

It’s fair.
It proves that a leader’s word means what it says (so don’t abuse it or use it in vain!) and creates trust among the company.
It creates right kind of organizational culture
And the most important reason: it makes life more predictable for who stays

How to Perform an Ultimatum

When delivering an ultimatum, it is important to be direct and clear in your communication. You should not sugar-coat the message or providing sandwich feedback. Instead, you should be very explicit in what you expect the person to achieve or do/not do if they intend on staying at the company. Be explicit that the terms are not negotiable and the purpose of this conversation is not to argument about it.

After delivering the message you should ask the person if he/she understood it and if there are any aspects of it that he/she wants to explore further.

Despite being a tough conversation, remember that your role as a leader is to provide guidance and develop your team member. Don’t just “drop the bomb”, but rather be helpful. After all, it is of your interest as well that the person achieves it.

Why Ultimatums are not common among entrepreneurs

Providing an ultimatum is not a common practice among entrepreneurs for several reasons.

First, akin to our primate cousins, humans learn a lot by watching other peers perform activities. Many entrepreneurs just have not had the opportunity to learn from a great leader who performed it well yet.

Second, most companies do not have this in their leadership code, nor do they teach how to do it.

Third and finally, providing an ultimatum is counterintuitive. Humans avoid unpleasant situations, and providing an ultimatum is relieving/necessary/worthy but unfortunately unpleasant.

*When is it acceptable to not provide an Ultimatum?

There are two occasions when it is not appropriate to provide an ultimatum.

If the person did something of an unacceptable gravity.
If the situation requires a abrupt change, such as a company-wide layoff situation or a strategic inevitable change in the company’s strategy.

Ultima verba

Ultimatums should never slow a company down, and a leader must never use the “necessity for an ultimatum” to avoid making the right decisions when the need calls for it.

Ultimatums are meant to make things predictable and nicer for all team members. They provide a clear last chance to do better and prevent a leader from having to fire someone for performance or conduct who wasn’t expecting it.

In conclusion, ultimatums are a powerful tool that all leaders should have in their arsenal. By providing clear expectations and consequences, leaders can create a culture of trust and reliability. While providing an ultimatum may be unpleasant, it is necessary in order to keep the company running smoothly and efficiently.

This article has a very sepulchral tone.

Leading is not just about providing ultimatums, they should be used as a last resort. Yet, I felt this to be an important and unspoken aspect of leadership that deserves being detailed and discussed.